Is apartment living Tassie’s way forward?

Tasmanians tend to buy houses not units, but a change in thinking could help the housing crisis.

AN increase in apartment living would have a positive impact on Hobart’s housing struggles, experts say.

Ray White Hobart managing director Nick Cowley said one of the upsides of higher density apartment buildings was the potential to provide homes for dozens of people on the same amount of land that may have had just one family in a house or been a former commercial site.

He said there are multiple reasons why Hobart needs to look at more inner city living.

“It starts with sustainability and encouraging the use of public transport and promoting walking and cycling, which can lead to a lower carbon footprint and reduced traffic congestion,” he said.

“Inner city living promotes efficient land use and reduces urban sprawl, preserving our beautiful agricultural land.

“Then there are the economic benefits for local businesses with the influx of new residents.”

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Real Estate Institute of Tasmania figures show the other dwellings portion of the market — units, apartments, townhouses — has accounted for about 13-14 per cent of all property transactions in the state over the past five years.

There are fewer other dwellings sold than blocks of land.

Last year there were 1481 other dwelling sales, about 15 per cent of Tasmania’s total transactions and more of this type of home were sold in the south than the other regions (853), with the north’s total 349, northwest 247, and the east and west just 19 and 14 sales.

The penthouse in this complex is on the market for $1.45m-plus with Harriosn Agents.

Last year, the median price for a Tasmanian other dwelling was $490,000, which was up from $432,000 in 2021. As recently as 2018, the median was $300,000.

REIT president Michael Walsh said Tasmania was unlike Melbourne or Sydney, where apartment living is common.

“However, there is demand for good-sized units and townhouses,” he said.

“An increase in higher density living in Hobart or Launceston — built with first-time or retiree needs in mind — could help with our housing pressures.

“In Launceston, there are a lot of previously unused spaces in the city, above shops, that have been repurposed for residential use.”

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The former Blue Gum service stattion was turned into FOUR31, an apartment complex where every home was bought by Tasmanians.

Mr Cowley said the buyer pool for apartments in Tasmania can vary.

“Demand for new Hobart apartments is always high,” he said.

“A 76-unit development coming to market soon in Claremont will predominantly be first-home buyers and investors, whereas a high-end luxury residential development such as Aberdeen on Burnett will attract downsizers and executives.

“It’s taken a while for Hobartians to get their heads around apartment living. However, for mainland residents — where a lot of demand comes from — it’s a way of life.”

Hobart Urban Design Advisory Panel chair Scott Balmforth and Hobart Lord Mayor Anna Reynolds.

Meanwhile, the City of Hobart and the Tasmanian Government are developing a plan to guide the future development, addressing land use, built form, open space and infrastructure needs.

The draft Central Hobart Plan covers 64 city blocks.

Hobart Lord Mayor Anna Reynolds previously told the Mercury the plan will encourage more medium density housing to add greater choice in the city.

“So often the only options are three-bedroom houses on the edge of our city, some people would prefer an apartment in our inner city, so this plan will hopefully facilitate more options for people to live in our centre,” she said.

Originally published as Is apartment living Tassie’s way forward?